What is the law of supply? What does this law imply about the shape of the supply curve?
What will be an ideal response?
The law of supply states that, holding everything else constant, an increase in price causes an increase in quantity supplied. The positive relationship between price and quantity supplied gives rise to an upward-sloping supply curve.
You might also like to view...
Answer the following statement(s) true (T) or false (F)
1. A utility maximizing person gets marginal utility from consuming their last pencil and pen of 4 and 10 respectively. If pencils cost 10 cents a piece, the pens must cost 25 cents a piece. 2. A utility maximizing person gets marginal utility of 20 from consuming their last piece of bread and of 10 from consuming their last glass of milk. If a piece of bread costs 5 cents, then a glass of milk must cost 20 cents. 3. When a consumer spends all of the income, it must be true that they are maximizing utility.
The income elasticity of demand for all goods taken together must be
A) zero. B) -1. C) +1. D) between 0 and 1.
The largest component of national income is:
a) compensation of employees. b) rents. c) interest. d) corporate profits.
Increase the number of patients we see by 10% within the next twelve months.
SMART Not SMART